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Need a New CD - Good Rate With a Small Early Withdrawl Penalty

LivninSC 14,931 1,093 September 10, 2015 at 11:44 AM
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Last Edited by LivninSC September 10, 2015 at 12:14 PM
Since Ally no longer penalizes you only 60 days interest if you withdraw $ from their 5 year CDs early (it's not 180 days) does anyone know of a bank that has a good rate while also having a relatively lax EWP?

I'll likely need the $ within a year or two and so it would make sense to get a 5 year rate (at the higher rate) and then just lose a couple months of interest assuming I did withdraw it however if it's 6 months then that may be a different story.

From what I could find for 5 year CDs the penalties were:
Capital One - 6 months
Ally - 5 months
Synchrony - 6 months
AMEX - 6 months (kind of a poor rate as well)
Discover - OMG it's horrible!
  • 1 year: 3 months simple interest on principal amount withdrawn
  • • 1 year–3 years: 6 months simple interest on principal amount withdrawn
  • • 4 years: 9 months simple interest on principal amount withdrawn
  • • 5 years: 18 months simple interest on principal amount withdrawn
  • • 7+ years: 24 months simple interest on principal amount withdrawn
GE Capital - 9 months for a 5 year
E-Loan - 1 yr (they didn't make it easy to find either!)
CIT Bank - 1 year
Everbank - 15 months

Basically it looks like CapOne, Ally, or Synchrony (have no idea who they are) may be the best choice but was hoping someone knew of something better.

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Joined Jan 2004
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14,931 Posts
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Original Poster
#2
Quote from LivninSC View Post :
Since Ally no longer penalizes you only 60 days interest if you withdraw $ from their 5 year CDs early (it's not 180 days) does anyone know of a bank that has a good rate while also having a relatively lax EWP?

I'll likely need the $ within a year or two and so it would make sense to get a 5 year rate (at the higher rate) and then just lose a couple months of interest assuming I did withdraw it however if it's 6 months then that may be a different story.

From what I could find for 5 year CDs the penalties were:
Capital One - 6 months
Ally - 5 months
Synchrony - 6 months
AMEX - 6 months (kind of a poor rate as well)
Discover - OMG it's horrible!
  • 1 year: 3 months simple interest on principal amount withdrawn
  • o 1 year-3 years: 6 months simple interest on principal amount withdrawn
  • o 4 years: 9 months simple interest on principal amount withdrawn
  • o 5 years: 18 months simple interest on principal amount withdrawn
  • o 7+ years: 24 months simple interest on principal amount withdrawn
GE Capital - 9 months for a 5 year
E-Loan - 1 yr (they didn't make it easy to find either!)
CIT Bank - 1 year
Everbank - 15 months

Basically it looks like CapOne, Ally, or Synchrony (have no idea who they are) may be the best choice but was hoping someone knew of something better.
Seems like every time I post something in this forum I get no responses Big Grin I guess that means I have already done my home work and know what's up. Look like Cap One and Ally (for certain reasons) for the win!
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#3
you would be dumb getting a 5 year cd


http://www.bankrate.com/finance/c...ock-1.aspx
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#4
I don't have an answer for you. But you might try posting over at fat wallet for more opinions.
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#5
There really is no reason to get a CD these days let alone one for a long term. You can get about 1% interest with many online bank money market and\or savings accounts (Ally included). What is the point of locking in a long term cd for 5 years at a crummy 2% and then taking a penalty on top of it? There is almost nothing to gain, esp. considering rates are likely heading up according to the Fed at some point.
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Joined Jan 2004
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#6
Quote from YanksIn2009 View Post :
There really is no reason to get a CD these days let alone one for a long term. You can get about 1% interest with many online bank money market and\or savings accounts (Ally included). What is the point of locking in a long term cd for 5 years at a crummy 2% and then taking a penalty on top of it? There is almost nothing to gain, esp. considering rates are likely heading up according to the Fed at some point.
FYI 2.25% for 18 months - 6 month penalty still beats out 1% for 18 months.....
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#7
Quote from LivninSC View Post :
FYI 2.25% for 18 months - 6 month penalty still beats out 1% for 18 months.....

Do not know where you get 2.25% at 18 months...Ally is 1.1% at 18 months...2% at 5 years. And even if you found that offer, after 1 year, you get the equivalent of 1.125% after penalties. So you want to lock up your money for an 1/8 of a percentage point? To each his own, but I would want no part of it.
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Joined Dec 2003
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#8
+1 for an online savings account over a CD for such a short period of time. I've been using Amex @ 0.9% for a couple years now. No restrictions, etc.
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